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Back to the drawing board

Despite a hawkish hike Fed hike last night the USD failed to rally. Without reading too much into the usual FOMC exercise in verbal gymnastics. The USD dollar couldn’t find a grip above near-term resistance after US 10 year Treasuries could not break above 3 % when Chair Powell reminded markets the economy is far from overheating which suggests the Fed will remain very much data dependent with inflation metrics top of the list reinforce .an all too familiar Fed narrative. But with the ECB looming this afternoon, traders were happy to book profit knowing all too well that they are probably in for the usual topsy-turvy session when Draghi ... (full story)